TAIEX ends below 7,900 points; Hon Hai resilient
CNATAIPEI--Shares in Taiwan closed below the 7,900-point mark Tuesday as investors stayed cautious ahead of the release of the minutes of the U.S. Federal Reserve's latest policymaking meeting held July 30-31, dealers said.
August 21, 2013, 12:01 am TWN
The bellwether electronics sector faced downward pressure because of ongoing concerns over global demand for high-tech devices, though Hon Hai Precision Industry Co. bucked the trend on news that it would soon start shipping new iPhones to Apple, they said.
The benchmark index was also dragged down by property shares, which took a beating amid fears that the government will introduce new taxes to curb market speculation, dealers said.
The weighted index closed down 67.56 points, or 0.85 percent, at 7,832.65, after moving between 7,829.78 and 7,924.52, on turnover of NT$83.10 billion (US$2.77 billion).
The market opened down 3.83 points, and selling escalated in the wake of the losses posted on Wall Street overnight, dealers said.
The electronics sector struggled throughout the session, closing down 0.88 percent, and old economy shares also faced sell-offs as investors saw their relatively high valuations as a reason to unload them, dealers said.
Property stocks, in particular, were hammered by tax concerns to send the index even lower at the end of the session, they said.
“The Fed's moves continue to dictate global equity markets,” Mega International Investment Service Corp. analyst Alex Huang said.
“Judging from the downtrend in certain emerging markets, such as Thailand and India, I suspect foreign investors have been moving funds out of the region amid fears of the Fed's possible monetary tightening,” the analyst observed.
Huang said investors should watch closely for the minutes of the Fed's meeting due out Wednesday for hints on whether the U.S. central bank will start to tighten liquidity in mid-September, when the next policymaking meeting is scheduled.